Pakistan hikes petrol by 43% and high-speed diesel by 55% as fuel prices surge

The Government of Pakistan has announced a steep hike in fuel prices, with petrol rising by 43 per cent and high-speed diesel (HSD) by 55 per cent, according to local media reports.

As per Dawn, petrol prices have been increased by PKR 137.23 per litre — from PKR 321.17 to PKR 458.41 — while HSD has surged by PKR 184.49 per litre, from PKR 335.86 to PKR 520.35. Kerosene prices have also gone up by PKR 34.08 to PKR 457.80 per litre.

To cushion the broader economic impact, authorities adjusted petroleum levy rates. The levy on petrol has been raised to PKR 160 per litre from PKR 105, while it has been reduced to zero on diesel, down from PKR 55, in a bid to limit the impact on transport and freight costs.

Petroleum minister Ali Pervaiz Malik said the “difficult and responsible” decision followed consultations involving the country’s top leadership, including the president, prime minister, military officials, and provincial chief ministers. He added that the move aims to restrict subsidies to the most deserving segments while maintaining fiscal discipline and economic stability under international commitments.

Alongside the price hike, the government announced targeted relief measures. Two-wheeler users will receive a subsidy of PKR 100 per litre, capped at 20 litres per month for three months. Small farmers will get a one-time subsidy of PKR 1,500 per acre during the harvest season.

Diesel-dependent inter-city and goods transport operators will also receive a subsidy of PKR 100 per litre. Additionally, freight trains carrying the bulk of food supplies will get PKR 70,000 per month in support, while large transport vehicles and inter-city public service vehicles will receive monthly assistance of PKR 80,000 and PKR 100,000 respectively.

The move comes as Pakistan continues efforts to stabilise its economy while balancing subsidy cuts and inflationary pressures.

With IANS inputs